A sixth sugar factory has started production, boosting the Tanzania government’s efforts to cut down on sugar imports and control retail prices.

The Mkulazi Sugar Factory, a joint venture by the National Social Security Fund (NSSF) and the Tanzania Prisons Service started production in December, aiming to produce 50,000 tonnes per year.

The $148 million factory is registered as a special strategic investment by Tanzania Investment Centre and will be the first producer of industrial sugar in the country. Tanzania imports all its industrial sugar.

Read: Tanzania U-turns on latest sugar imports ban

The retail price for a kilo of brown sugar is Tsh3,200 ($1.3), making it one of the most expensive food commodities in Tanzania.

Targeting to end the scourge of sugar shortages and high prices of imported sugar, the Sugar Board of Tanzania (SBT) is pushing for increased acreage under sugarcane and expansion of sugar factories by inviting more investors into the sector. 

The government spends about $150 million to fill the deficit caused by low production in local factories, the SBT said.

Production target

Current sugar production in Tanzania is about 342,000 tonnes per year, against a demand of about 630,000 tonnes for home consumption and industrial production. The SBT has set a production target of 750,000 tonnes for local consumption and export.

Sugar production has for a while been concentrated in five operational factories; Kilombero Sugar Company, Tanganyika Planting Company (TPC), Kagera Sugar, Mtibwa Sugar Estates and Bagamoyo Sugar Factory whose production kicked off in 2022.

Read: Tanzania plans to grow more cane

Agriculture Minister Hussein Bashe said that production of sugarcane between 2023 and 2024 is expected to reach 4.5 million tonnes and produce 465,000 tonnes of sugar.

Currently, Tanzania imports sugar from Uganda, India, Brazil, Thailand and India to meet its demand for domestic and industrial sugar. By Apolinari Tairo, The East African